A range of industry-specific challenges, from various regulatory requirements to fragmented technology stacks, have led today’s B2B software buyers to expect vendor solutions that are custom-fit for their distinct needs. In response, software companies are increasingly “verticalizing”—adapting their products, marketing, sales, and ecosystems to specific industry use cases—rather than relying on the broad applicability of “horizontal” products.

  • Our research finds that the trend of verticalization is accelerating, with more than 40% of software companies increasing their verticalization efforts in existing industries and almost a third expanding to additional industries.
  • The most important aspect of verticalization to customers is expertise.
  • The impact of verticalization spans the entire sales cycle—affecting deal size and deal velocity and creating a competitive edge.
  • The right partnerships can be tremendous accelerators in verticalization for software vendors.
  • B2B technology providers have a major opportunity to build sustainable advantage through a clear, industry-focused approach.

Read more in this BCG study.

Jens Koegler

Jens Koegler is VMware's Healthcare Industry Director in EMEA. He is helping our healthcare customers develop and run modern applications to drive innovation and ensure better patient care through a digital foundation that includes data center, hybrid cloud, mobile, networking and security technologies. VMware plays a strategic role in the healthcare industry. Its leading innovations in enterprise software help ensure consistent patient care and reduce IT access time for healthcare professionals so they can spend more time with their patients. Jens plays a key role in helping customers understand how new applications, devices, the latest IT technologies and digital transformation are driving innovation in healthcare.